3 Tips for Saving Money in Your 20s

Saving money in your 20s may seem like an impossible task, but did you know that your 20s is actually prime time to start setting money aside for you future?

If you’re wondering how to save money in your 20s, follow these three simple tips for managing your funds and setting yourself up for a financially successful future.

3 Important Money Saving Tips for Young Adults

1. Start an emergency fund. An emergency fund is one of the most important things you can establish in your twenties. Should you experience any financial hardships, such as unemployment, unexpected medical expenses, or an expensive car repair, your emergency fund will be there to cover you.

But how much money should you save? That depends on how much you spend each month. Money Under 30 suggests having at least three months of expenses saved up. You can use their Emergency Fund Calculator to get a better idea of how much you should be putting away.

2. Mange your budget. Take a close look at your budget—especially your entertainment budget—to see where you can cut back. Adults in their twenties often spend money on entertainment, like concerts with friends and weekend travel plans, and these areas are often where you can cut back the most.

The Penny Hoarder suggests taking charge in your group of friends and making sure your plans are reasonably priced.

3. Pay down your debt. Paying down your loans now will save you money in the future. Forbes recommends focusing on your emergency fund and retirement savings first, then paying off any debt with interest rates over 7%. For interest rates over 7%, you’re likely save more on interest than you would earn by investing that money. Always consult a financial advisor or debt expert before making decisions on consolidation or pay off.

Save Money with First Bank

Following these three simple money management tips is a great way to reach your savings goals. For more money management tips, check out First Bank’s Financial Education Center or contact us to learn more about our savings accounts.

———

Sources:

Betterment: https://www.betterment.com/resources/investment-strategy/strategy-investing-in-your-20s/

Money Under 30: http://www.moneyunder30.com/emergency-fund-calculator

PennyHoarder: http://www.thepennyhoarder.com/managing-money-in-your-early-20s/

Forbes: http://www.forbes.com/sites/financialfinesse/2014/03/06/should-you-increase-savings-first-or-pay-down-debt/#7ae4e10b33e6

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

7 Tips to Help You Protect Your Identity To help protect you from fraudsters, we’ve compiled this list of handy tips. 4 min read

Fraud Protection Best Practices: When to use a Credit Card vs. a Debit Card Key Fraud-Related Differences Between Credit Cards and Debit Cards A credit card allows you to borrow money from a lender up to a set limit, with the expectation of paying it back later, often with interest if not paid in full. A debit card, on the other hand, directly withdraws funds from your bank account when you make a purchase, limiting spending to the amount in your account. Balancing credit and debit card use can enhance both security and financial stability. If someone steals your credit card information, they are effectively stealing the credit card issuer’s money, not directly accessing your bank account. This separation provides a crucial security buffer, giving you time to dispute charges without risking essential funds like rent or grocery money. In contrast, debit card fraud affects your checking account immediately, which can cause financial disruptions until the issue is resolved. First Bank Cardholders: Did you know that First Bank credit and debit cards offer Mastercard’s zero-liability protection? Whether you are using your First Bank credit or debit card, you’ll only pay for purchases that you have authorized on your Mastercard® card. Unauthorized purchases are not your responsibility. Instances Where a Credit Card can Offer Increased Fraud Protection Online Purchases Credit cards are generally safer for online transactions. They offer robust fraud protection, and most credit card companies monitor for suspicious activity, often reimbursing fraudulent charges quickly. Travel and International Transactions When traveling, especially abroad, use a credit card. Credit cards typically offer better fraud monitoring and reduced liability if your card information is compromised. Big-Ticket Purchases Use a credit card for expensive items like electronics or home appliances. Many credit cards come with purchase protection, extended warranties, and easier dispute resolution if something goes wrong. Recurring Payments or Subscriptions Credit cards provide better protection if you need to dispute unauthorized subscription charges, helping avoid interruptions to your service while the issue is resolved. Best Practices for Card Security Monitor Transactions: Regularly check both credit and debit accounts for unauthorized activity. Use Secure Websites: Look for “https://” in website URLs when shopping online. Enable Alerts: Sign up for transaction alerts for immediate fraud detection. Report Issues Promptly: The sooner you report suspicious activity, the better your chances of minimizing loss. Responsible Credit Card Use To maximize fraud protection while maintaining financial health, use credit cards responsibly by: Paying the Balance in Full: Avoid interest charges by clearing the balance each month. Staying Within Limits: Use only a portion of your credit limit to maintain a healthy credit score. Making Timely Payments: Pay on time to avoid late fees and credit score damage. 3 min read

4 Common Costs Of Renovating An Older Home You’re on the market for your first home, and a great deal comes across on an older home. You love the potential it has, but then a question comes to mind: how much will it cost to renovate this house? 5 min read

The Best Personal Banking Services for You Finding the best personal banking services for your financial needs doesn’t need to be difficult. The factors that go into evaluating available options can include convenience, fees, and interest rates. It’s essential for you to consider how important each of these items is to you, or if there are other factors you need to consider. When thinking through your needs, know that your local First Bank* personal banking services can provide you with plenty of convenience and even more peace of mind. What is Personal Banking? Personal banking refers to all the services banks design and offer to individual consumers rather than businesses. These services include checking and savings accounts, credit and debit cards, certificates of deposit (CDs), loans, and more. You should consider these top 5 factors for your personal banking needs: Fees and Minimum Balance — Before opening an account at any bank, it’s critical to be fully aware of fees (e.g. monthly, transaction, annual). Some banks have hidden fees that could creep up on you when you least expect it. If a bank doesn’t reimburse ATM fees, make sure there are enough no-fee ATMS in your area. Learn how to Keep It Fee Free** at First Bank. Interest Rate — Keep an eye out for banks that offer high-yield checking accounts. These kind of accounts provide you with higher interest rates so you have the option to earn interest on both savings and checking accounts. Convenience — Online banking is the most convenient with its 24/7 web-based access to your finances. But if you prefer to visit the bank, you’ll want to find one with nearby locations and convenient hours too. First Bank has locations in North Carolina and South Carolina and it’s easy to find your closest branch location. Service and Perks — Customer service can make or break your experience with a bank. It’s important for you to feel like calling your bank will be productive and pleasant. Find out if a bank offers extra services that could be beneficial for you, including free checks, a rewards program, or special accounts for kids. Easy Online and Mobile Banking — Online and mobile banking are great for managing your finances wherever and whenever you need to. This 4 min read

3 Tips for Saving Money in Your 20s

Ready to talk to an expert?

3 Important Money Saving Tips for Young Adults

Save Money with First Bank

Ready to talk to an expert?

You may be interested in...